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APRIL 23, 2013
An Uneven Recovery, 2009-2011
A Rise in Wealth for the Wealthy;
Declines for the Lower 93%
FOR FURTHER INFORMATION, CONTACT
Pew Research Center
1615 L St., N.W., Suite 700Washington, D.C. 20036
Media Inquiries:
202.419.4372
www.pewresearch.org
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About the Pew Research Center’s Social & Demographic Trends Project
Pew Research Center is a nonpartisan source of data analysis. It does not take advocacy
positions. Its Social & Demographic Trends project studies behaviors and attitudes of Americans in key realms of their lives, including family, community, finance, work and
identity. All of the Social & Demographic Trends project reports are available at
www.pewsocialtrends.org. Pew Research Center is a subsidiary of The Pew Charitable Trusts, a
Philadelphia-based public charity.
The staff of the Pew Research Center’s Social & Demographic Trends project is:
Paul Taylor, Director
Kim Parker, Associate Director
Richard Fry, Senior Research Associate
Gretchen Livingston, Senior Researcher
D’Vera Cohn, Senior Writer
Rich Morin, Senior Editor
Wendy Wang, Research Associate
Anna Brown, Research Assistant
Eileen Patten, Research Assistant
Mary Seaborn, Administrative Manager
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A Rise in Wealth for the Wealthy;Declines for the Lower 93%
By Richard Fry and Paul Taylor
OVERVIEW
During the first two years of the nation’s
economic recovery, the mean net worth of
households in the upper 7% of the wealth
distribution rose by an estimated 28%, while
the mean net worth of households in the lower
93% dropped by 4%, according to a Pew Research Center analysis of newly released
Census Bureau data.
From 2009 to 2011, the mean wealth of the 8
million households in the more affluent group
rose to an estimated $3,173,895 from an
estimated $2,476,244, while the mean wealth of
the 111 million households in the less affluent
group fell to an estimated $133,817 from an
estimated $139,896.
These wide variances were driven by the fact
that the stock and bond market rallied during
the 2009 to 2011 period while the housing
market remained flat.
Affluent households typically have their assets concentrated in stocks and other financial
holdings, while less affluent households typically have their wealth more heavily concentrated
in the value of their home.
From the end of the recession in 2009 through 2011 (the last year for which Census Bureau
wealth data are available), the 8 million households in the U.S. with a net worth above
$836,033 saw their aggregate wealth rise by an estimated $5.6 trillion, while the 111 million
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households with a net worth at or below that level saw their aggregate wealth decline by an
estimated $0.6 trillion.1
Because of these differences, wealth inequality increased during the first two years of therecovery. The upper 7% of households saw their aggregate share of the nation’s overall
household wealth pie rise to 63% in 2011, up from 56% in 2009. On an individual household
basis, the mean wealth of households in this more affluent group was almost 24 times that of
those in the less affluent group in 2011. At the start of the
recovery in 2009, that ratio had been less than 18-to-1.
(The focus in this report on the upper 7% of households rather
than some other share of high wealth households reflects the
limits of the tabulations published by the Census Bureau. The
boundaries of its wealth categories dictated the split of households analyzed in this report.)
Overall, the wealth of America’s households rose by $5 trillion,
or 14%, during this period, from $35.2 trillion in 2009 to $40.2
trillion in 2011.2
Household wealth is the sum of all assets, such
as a home, car, real property, a 401(k), stocks and other financial
holdings, minus the sum of all debts, such as a mortgage, car
loan, credit card debt and student loans.
During the period under study, the S&P 500 rose by 34% (and
has since risen by an additional 26%), while the S&P/Case-Shiller home price index fell by 5%,
continuing a steep slide that began with the crash of the housing market in 2006. (Housing
prices have slowly started to rebound in the past year but remain 29% below their 2006 peak.)
The different performance of financial asset and housing markets from 2009 to 2011 explains
virtually all of the variances in the trajectories of wealth holdings among affluent and less
affluent households during this period. Among households with net worth of $500,000 or
1 Unless otherwise noted, dollar amounts are adjusted for inflation and reported in 2011 dollars.2 The Census tabulations are based on the Survey of Income and Program Participation (SIPP). For 2010 this data source
indicated that total household wealth was $39.4 trillion. An alternative source of data on household wealth, the Federal Reserve
Board’s Survey of Consumer Finances (SCF), indicates that 2010 wealth totaled $60.0 trillion. Some of the discrepancy may be
due to differences in each survey’s universe. The SIPP is restricted to the household population, while the SCF includes families
living in group quarters. The SCF is also more comprehensive in the assets it covers. SIPP does not include the cash value of li fe
insurance policies and the value of household furnishings such as antiques, art and jewelry. Since the SCF oversamples high net
worth families, estimates of mean net worth and aggregate net worth based on it are preferred (Orzechowski and Sepielli, 2003).
However, no post-recession SCF data are yet available.
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more, 65% of their wealth comes from financial holdings, such as stocks, bonds and 401(k)
accounts, and 17% comes from their home. Among households with net worth of less than
$500,000, just 33% of their wealth comes from financial assets and 50% comes from their
home.
The Census Bureau data also indicate that among less affluent households, fewer directly
owned stocks and mutual fund shares in 2011 (13%) than in 2009 (16%), meaning a smaller
share enjoyed the fruits of the stock market rally. Likewise, fewer had individual retirement
accounts (IRAs) or Keogh accounts (22% in 2011 versus 24% in 2009) and the same share had
401(k) or Thrift Savings Plan
accounts (39% in both years).
Among affluent households,
there was also a decline in the
share directly owning stock and mutual fund shares
during this period (59% in
2011 versus 62% in 2009), but
a slight increase in the share
with IRAs or Keogh accounts
(70% versus 68%) and a
larger increase in the share
with 401(k) or Thrift Savings
Plan accounts (65% versus
61%).
Overall, net worth per
household in the U.S. in 2011
made up nearly all the ground it had lost since 2005—$338,950 versus $340,252 in 2005, the
latest pre-recession data published by the Census Bureau. (Total household wealth doubtless
rose for a period after 2005 before falling precipitously during the Great Recession of 2007-
2009 and rebounding since then. However, no household wealth data are available from the
Census Bureau for the years between 2005 and 2009, so it is not possible to pinpoint when, or
at what level, the peak in wealth per household occurred.)
Looking at the period from 2005 to 2009, Census Bureau data show that mean net worth
declined by 12% for households as a whole but remained unchanged for households with a net
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worth of $500,000 and over. Households in that top wealth category had a mean of
$1,590,075 in wealth in 2005, $1,585,441 in 2009 and $1,920,956 in 2011.3
About the Report
Much of the original analysis in this report is based on published tabulations of household
wealth and asset ownership by the U.S. Census Bureau. Estimates of the 2011 level and
composition of household wealth were released by the Census Bureau on March 21, 2013. The
data can be downloaded from http://www.census.gov/people/wealth/data/dtables.html . The
Census Bureau’s wealth tabulations are based on its long-running longitudinal household
survey called the Survey of Income and Program Participation (SIPP). The Census Bureau has
published comparable wealth tabulations based on SIPP since 1984 (the data were collected in
1984; the report publication date was July 1986). SIPP is among the nation’s most prominentsources of data on the wealth of American households. The Board of Governors of the Federal
Reserve System also publishes periodic estimates of the aggregate net worth of the nation’s
households and nonprofit organizations. The most recent Federal Reserve System estimates
are for the fourth quarter of 2012. However, these “flow of funds accounts” estimates provide
no demographic information; that is, they do not illuminate which households own the
nation’s wealth, only the total amount of that wealth. SIPP provides detailed demographic
information on the ownership of wealth, and the 2011 wealth estimates provided by the Census
Bureau are the most recent estimates available on which households own the nation’s wealth.4
The estimates are based on responses from a sample of the population and may differ from the
actual values because of sampling variability and other factors.
The terms “wealth” and “net worth” are used interchangeably. “Household net worth” refers to
the value of the household’s assets minus the value of household liabilities, or the value of what
it owns minus the value of what it owes. “Net worth” includes the value of nonfinancial assets
owned, such as equity in one’s own home and a motor vehicle, as well the value of financial
assets such as bank accounts, defined-contribution retirement accounts, savings bonds and
directly owned stocks, bonds and securities. Net worth as measured by the Survey of Income
3 However, price inflation makes this comparison more tenuous as the years go by. In other words, $500,000 was worth
considerably more in 2005 than 2011. In terms of constant purchasing power, households with a net worth of $500,000 and over
in 2005 should be compared with households with a net worth of $576,052 or more in 2011. Clearly the share of households in
this upper net worth category fell from 2005 to 2011. In 2005 15% of households had a net worth of $500,000 or more. By 2011,
13.5% of households had a net worth of $500,000 or more, so a lower share would have had $576,052 or more.4 Another prominent source of data on wealth is the Survey of Consumer Finances, collected by the Board of Governors of the
Federal Reserve System. The most recent Survey of Consumer Finances was collected in 2010. It is a triennial survey; the next
Survey of Consumer Finances data, for 2013, will be available in 2015.
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and Program Participation does not include the value of traditional pensions (defined-benefit
retirement plans) or present or future benefit streams tied to Social Security.
Unless otherwise noted, dollar amounts are adjusted for inflation and reported in 2011 dollars.The inflation adjustment utilizes the Bureau of Labor Statistics’ Consumer Price Index
Research Series (CPI-U-RS) as published in DeNavas-Walt, Proctor and Smith (2012). This is
the price index series used by the U.S. Census Bureau to deflate the data it publishes on
household income.
Additional details on the Census Bureau wealth estimates are provided in the Appendix.
This report was conceived and researched by Richard Fry, senior economist with the Pew
Research Center’s Social & Demographic Trends project. The report was written by Fry and
Paul Taylor, executive vice president of the Pew Research Center and director of the Social &Demographic Trends project. Research assistant Eileen Patten provided expert assistance with
the preparation of charts and formatting the report. Research assistants Patten and Anna
Brown number-checked the report. It was copy-edited by Marcia Kramer. The authors
appreciate the insights on the distribution of wealth provided by Rakesh Kochhar, senior
researcher with the Pew Research Center.
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CHAPTER 1: THE UNEVEN WEALTH RECOVERY AMONG THENATION’S HOUSEHOLDS
The net worth of the nation’s households increased from 2009 to 2011, but the increase in wealth was far from widely distributed among households. The vast majority of the nation’s
households experienced a decline in net worth.
Recently released Census Bureau net worth figures indicate that mean net worth, or net worth
per household, increased from $297,729 in 2009 to $338,950 in 2011, a 14% increase.
Detailed net worth figures are available for nine categories of net worth, stretching from
negative or zero net worth to a net worth level of $500,000 or more. Households in all eight
net worth categories from negative or zero to $250,000 to $499,999 of net worth experienced
a decline in mean net worth from 2009 to 2011. Only households with a net worth of $500,000
or more experienced an increase in mean net worth, from $1,585,441 in 2009 to $1,920,956 in
2011, or 21%.
These wealth statistics do not imply that all households with a net worth below $500,000 lost
wealth from 2009 to 2011. There were no doubt some gainers. But the decline in mean net
worth means that the losses of the losers trumped the gains of the gainers.
Mean Net Worth by Household Net Worth Category, 2009 and 2011 % of 2011households
Mean net worth (in 2011 dollars)
2009 2011% change
2009 to 2011
All 100% $297,729 $338,950 +14%
Net worth groupNegative or zero 18% -$34,777 -$35,472 -2%
$1 to $4,999 9% $2,016 $1,899 -6%
$5,000 to $9,999 5% $7,433 $7,248 -2%
$10,000 to $24,999 7% $17,342 $16,586 -4%
$25,000 to $49,999 7% $38,740 $36,878 -5%
$50,000 to $99,999 10% $77,028 $73,099 -5%
$100,000 to $249,999 18% $173,100 $164,345 -5%
$250,000 to $499,999 13% $370,148 $354,668 -4%
$500,000 and over 13% $1,585,441 $1,920,956 +21%
Source: Pew Research Center tabulations of Survey of Income and Program Participation wealth data.
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In both 2009 and 2011 about 13.5% of households had a net worth of at least $500,000.
However, even though the category had the same number of households in both years, some
individual households moved up into the category during the period under study, and some fell
out. This is true for all the wealth categories shown above.5
High Net Worth Households
Even though households with net worth of $500,000 or above saw their mean net worth
increase from 2009 to 2011, this group’s median net worth decreased during the same period—
to $836,033 in 2011 from $889,275 in 2009. The median refers to the midpoint of a group—in
this case, households at the 93.25 percentile of wealth (halfway between the 86.5th percentile
and the 100th percentile). A simultaneous rise in the mean and decline in the median implies
that aggregate net worth increased only among households above the median—that is, the 8
million households with net worth of $836,033 or more in 2011. Those upper 7% of households had an estimated aggregate wealth gain of 28% from 2009 to 2011, while the
estimated aggregate wealth of households in the $500,000 to $836,033 range fell by 4%.
5 The available Census Bureau tabulations do not reveal the change in wealth for the subset of households with $500,000 or more
in net worth in both 2009 and 2011. SIPP is longitudinal in nature and hence follows the same households in the survey over
time. In principle an analyst could determine the net worth of households in both 2009 and 2011 using SIPP. In practice, it is not
a straightforward analysis with the data made available for public use because net worth was top-coded in wave 10 of the 2008
panel but not in wave 4 of the panel.
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$35.2
$15.4$19.8
$40.2
$14.8
$25.4
All Lower 93% Upper 7%
2009 2011
$5.0trillion
increase
$0.6trillion
decrease
$5.6trillion
increase
The Changing Distribution of
Household Wealth
The total stock of household wealth in the U.S.increased $5.0 trillion from 2009 ($35.2
trillion) to 2011 ($40.2 trillion);6 all of these
aggregate gains, and more, went to households
in the upper 7%. In 2009 households with a
net worth of $889,275 and below (the lower
93%) had an estimated $15.4 trillion in
wealth.7
6 See Gottschalck, Vornovytskyy and Smith (2013) for a discussion of aggregate net worth in 2000 and 2011.
By 2011, households in the lower 93%
had $14.8 trillion in wealth. Meanwhile, at the
top of the wealth pyramid, the aggregate
wealth of the upper 7% rose from an estimated$19.8 trillion in 2009 to $25.4 trillion in 2011
(a $5.6 trillion increase). As a result, the upper
7% of households owned 63% of the nation’s
total household wealth in 2011, up from 56% in
2009.
7 On the basis of the means published by the Census Bureau, it is simple math to calculate the aggregate wealth of households
with $499,999 or less of net worth. To estimate the aggregate wealth of households in the lower 93%, one needs the mean
wealth of households between $500,000 and $889,275 in net worth. The $15.4 trillion estimate is based on assuming that wealth
is uniformly distributed over the households in the $500,000 to $889,275 category or that their mean net worth was $694,638. A
similar assumption was used to estimate aggregate wealth of the lower 93% in 2011. While an assumption is needed to estimate
the aggregate wealth owned, the Census Bureau data unambiguously indicate that total wealth increased from 2009 to 2011 but
that wealth declined among the lower 87% of households.
Aggregate Net Worth of
Households, 2009 and 2011
In trillions of 2011 dollars
Note: In 2011 lower 93% refers to households with a networth at or below $836,033. In 2009 lower 93% refers tohouseholds with a net worth at or below $889,275.
Source: Pew Research Center tabulations of Survey of Income and Program Participation wealth data
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CHAPTER 2: EXPLAINING THE DIFFERENTIAL WEALTHRECOVERY
Wealthier households tended to gain most of the wealth created from 2009 to 2011 becausethey were much more likely to own the assets that rose the most in value. From 2009 to 2011,
average net worth per household rose 14% overall. However, average net worth excluding
home equity rose 31%, from $195,650 in 2009 to $255,843 in 2011. Much of the nation’s net
worth excluding home equity is in financial assets, and the nation’s households with at least
$500,000 of net worth were more likely to own financial assets, particularly the financial
assets that rose the most in value from 2009 to 2011.
Mean Value of Assets by Type of Asset Owned, 2009 and 2011
In 2011 dollars
2009 2011% change
2009 to 2011
Net worth $297,729 $338,950 +14%
Net worth (excluding equity in own home) $195,650 $255,843 +31%
Interest-earning assets at financial institutions $27,275 $22,170 -19%
Other interest-earning assets1 $164,342 $803,641 +389%
Regular checking accounts $2,437 $2,659 +9%
Stocks and mutual fund shares $151,507 $228,643 +51%
Equity in business or profession $158,163 $180,046 +14%
Equity in motor vehicles $7,731 $8,418 +9%
Equity in own home $150,771 $127,290 -16%
Rental property equity $547,462 $370,013 -32%
Other real estate equity $175,109 $171,529 -2%
U.S. saving bonds $5,740 $6,103 +6%
IRAs or Keogh accounts $153,785 $166,451 +8%
401(k) and Thrift Savings Plan accounts $76,086 $119,799 +57%
Other assets2 $123,240 $154,524 +25%
Notes: Mean value is calculated only over households that own the asset. 1Includes U.S. government securities and municipal orcorporate bonds. 2Includes mortgages held for sale of real estate, amount due from sale of business property, and other financialassets.
Source: Pew Research Center tabulations of Survey of Income and Program Participation wealth data
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In 2009 households with at least $500,000 of net worth owned 72% of the nation’s aggregate
net worth but 81% of the nation’s aggregate financial assets.
The Census Bureau reports the average value for specific assets among the households thatown that specific asset. Very large gains in average holdings were reported for specific
categories of financial assets. For example, the average value of 401(k) and Thrift Savings Plan
accounts rose 57% from 2009 ($76,086) to 2011 ($119,799). The mean value of directly owned
stocks and mutual funds rose 51% from 2009 to 2011. Among households owning assets in the
category of “other interest-earning assets,” or direct owners of government securities or
municipal and corporate bonds, the average holdings of those securities and bonds rose nearly
fivefold from 2009 ($164,342) to 2011 ($803,641).
Asset Ownership Rates by Type of Asset and Household Net Worth
Category, 2009 and 2011
%
2009 2011
All
Net worth$499,999
or less
Net worth$500,000 or
more All
Net worth$499,999
or less
Net worth$500,000 or
more
Interest-earning assets at financial institutions 71 67 93 70 66 93
Other interest-earning assets1 3 1 14 3 1 13
Regular checking accounts 32 32 29 29 29 26
Stocks and mutual fund shares 22 16 62 20 13 59
Equity in business or profession 15 12 30 14 11 29
Equity in motor vehicles 84 83 94 85 83 95Equity in own home 66 62 95 65 61 96
Rental property equity 6 3 21 5 3 21
Other real estate equity 6 4 19 5 3 17
U.S. saving bonds 11 9 24 9 8 22
IRAs or Keogh accounts 30 24 68 29 22 70
401(k) and Thrift Savings Plan accounts 42 39 61 42 39 65
Other assets2 4 3 12 4 3 12
Notes: 1Includes U.S. government securities and municipal or corporate bonds. 2Includes mortgages held for sale of real estate,amount due from sale of business property, and other financial assets.
Source: Pew Research Center tabulations of Survey of Income and Program Participation wealth data
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Average gains in other important asset categories paled by comparison. Reflecting the decline
in house values nationally from 2009 to 2011, average equity in one’s own home fell 16%. The
mean value of rental properties tumbled 32% from 2009 to 2011, and the value of “other real
estate equity” (vacation homes and other real estate) declined 2%. Most households (70%) ownan interest-bearing account at a bank or other financial institution, such as a certificate of
deposit, savings account or money market deposit account. The average value of these
accounts fell 19% from 2009 ($27,275) to 2011 ($22,170).
Turning to asset ownership rates, households with a net worth of at least $500,000 were much
more likely to own the financial asset categories that experienced large gains in average value.
In 2011, households with a net worth of at least $500,000 were about 13 times as likely as
households with less than $500,000 in net worth to directly own government securities and
municipal and corporate bonds: 13% for high net worth households versus 1% for lower net
worth households. Differences in the likelihood of ownership were also pronounced for otherhigh-performing financial asset categories. For example, 59% of households with a net worth
of at least $500,000 directly own stocks or mutual fund shares. By comparison, only 13% of
lower net worth households directly own these assets. Almost two-thirds of households with at
least $500,000 of net worth owned a 401(k) or Thrift Savings Plan retirement account in 2011.
Among households with less than $500,000 in net worth, only 39% owned one of these assets.
In the aggregate, all of the total $5.0 trillion increase in household wealth from 2009 to 2011
was the result of increases in various types of financial assets. These gains were heavily
concentrated among the affluent. For example, the value of wealth in government securities
and corporate and municipal bonds rose $2.2 trillion from 2009 ($0.6 trillion) to 2011 ($2.8
trillion). The value of such assets held by households with at least $500,000 in net worth rose
$2.2 trillion and hence high net worth households were the sole gainers in that lucrative asset
class. The value of directly owned stock and mutual funds rose $1.4 trillion. The value of direct
stock holdings owned by high net worth households rose $1.4 trillion. Wealth in 401(k) and
Thrift Savings Plan accounts rose $2.2 trillion. The value of such holdings among households
with at least $500,000 in net worth rose $2.1 trillion.
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By contrast, the asset classes that experienced declines since 2009 were more widely held and
thus the decline in value was not solely concentrated among households with at least
$500,000 in net worth. For example, equity in own home tumbled $1.9 trillion from 2009 to
2011, but equity in own home among high net worth households declined only $1.1 trillion.
Aggregate Value of Specific Assets by Household Net Worth Category,
2009 and 2011
In trillions of 2011 dollars
2009 2011Change
2009 to 2011
Networth
$499,999or less
Networth
$500,000or more
Networth
$499,999or less
Networth
$500,000or more
Networth
$499,999or less
Networth
$500,000or more
Interest-earning assets at financial institutions 0.88 1.40 0.79 1.05 -0.09 -0.35
Other interest-earning assets1 0.04 0.58 0.04 2.80 0.00 +2.22
Regular checking accounts 0.07 0.03 0.06 0.03 0.00 0.00
Stocks and mutual fund shares 0.45 3.46 0.42 4.88 -0.03 +1.42
Equity in business or profession 0.35 2.39 0.43 2.52 +0.08 +0.13
Equity in motor vehicles 0.52 0.25 0.61 0.24 +0.09 -0.01
Equity in own home 5.56 6.24 4.71 5.15 -0.85 -1.09
Rental property equity 0.35 3.22 0.37 2.03 +0.02 -1.19
Other real estate equity 0.27 0.91 0.24 0.76 -0.04 -0.14
U.S. saving bonds 0.04 0.04 0.03 0.03 0.00 0.00
IRAs or Keogh accounts 0.92 4.51 0.97 4.75 +0.05 +0.24
401(k) and Thrift Savings Plan accounts 1.70 2.07 1.85 4.14 +0.15 +2.07
Other assets2 0.10 0.46 0.10 0.60 0.00 +0.13
Notes: 1Includes U.S. government securities and municipal or corporate bonds. 2Includes mortgages held for sale of real estate,amount due from sale of business property, and other financial assets.
Source: Pew Research Center tabulations of Survey of Income and Program Participation wealth data
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132
126
135
100
110
120
130
140
150
2009 Q1 2010 Q1 2011 Q1 2012 Q1 2012 Q4
CHAPTER 3: BACKGROUND ON CHANGES IN MAJOR ASSETPRICES FROM 2009 TO 2011
The nation began its recovery from the Great Recession in June 2009. From mid-2009 untilthe end of 2011, the price or value of major classes of assets has not followed a uniform
trajectory.8
Generally prices in bond and equity markets have risen significantly since the
beginning of the economic recovery, while national home prices continued to decline.
Home Prices
According to the S&P/Case-
Shiller home price index,
home prices peaked
nationally in the first quarterof 2006 at 191. From the
peak until the second quarter
of 2009, home prices
declined 31%. Though the
economic recovery
commenced in June 2009,
hemorrhaging in the national
housing market continued.
Home prices fell an
additional 5% from the
second quarter of 2009 until
the fourth quarter of 2011.
National home prices
bottomed out at the end of
2011; during 2012 they
recovered the declines sustained since the start of the economic recovery, but they remain
below the 2006 peak.
8 The Census Bureau wealth data were collected over September to December in both 2009 and 2011. Respondents reported on
their assets and liabilities as the last day of the prior month, so the wealth snapshots are from August to November in both years.
In this chapter, in order to align the discussion with the official dating of the Great Recession according to the National Bureau of
Economic Research, the course of asset prices is described from June 2009 (or the second quarter of 2009) to December 2011 (or
the fourth quarter of 2011).
S&P/Case-Shiller Home Price Index, 2009 to
2012
1987 Q1= 62
Note: Dates labeled in the chart are 2009 Q2, 2011 Q4 and 2012 Q4.
Source: Seasonally adjusted quarterly national index of home prices, available athttp://www.standardandpoors.com/indices/sp-case-shiller-home-price-indices/en/us/?indexId=spusa-cashpidff--p-us----
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926
1,243
1,422
500
700
900
1100
1300
1500
Jan. 2009 Jan. 2010 Jan. 2011 Jan. 2012 Dec. 2012
Stock Prices
Despite some fits and starts,
U.S. equity markets havegenerally been on an upward
trajectory during the
economic recovery. For
example, the S&P 500 stock
index reached a bottom in
March 2009 (at 677 on
March 9). From June 2009
until December 2011 the S&P
500 rose 317 points (from
926 to 1,243), or 34%. Morerecently, stocks have gone on
to reach new highs. In March
2013 the S&P surpassed the
prior high of 1,565 attained
on Oct. 9, 2007.
S&P 500 Index, 2009 to 2012
(1941–43=10)
Note: Dates labeled in the chart are June 2009, December 2011 and December2012.
Source: 2013 Economic Report of the President , Table B-96
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3.72
1.98 1.72
5.61
3.933.65
0
1
2
3
4
5
6
7
Jan. 2009 Jan. 2010 Jan. 2011 Jan. 2012
10-year U.S. Treasury security
Aaa corporate bonds (Moody's)
Dec. 2012
Security and Bond Prices
Although the particulars
depend on the particularasset and term, from June
2009 until December 2011
fixed income markets
performed at least as well as
equity markets. As a rule of
thumb, the prices of bonds
move inversely with the yield
or interest rate on the bond.
Interest rates declined
substantially from June2009 to December 2011. For
example, the yield on the 10-
year U.S. Treasury security
over this period fell 1.74
percentage points, or 174
basis points (from 3.72% to
1.98%). That represents a
47% decline in the rate and
an equivalent gain in the
price of the security. Alternatively, we can investigate rates in the corporate bond market.
From June 2009 to December 2011, the Aaa corporate bond rate fell 168 basis points (from
5.61% to 3.93%), representing a 30% decline in the rate and a 30% appreciation in the value of
corporate bonds. U.S. bond yields fell further over the course of 2012.
Bond Yields, 2009 to 2012
% per annum
Note: Dates labeled in the chart are June 2009, December 2011 and December2012.
Source: 2013 Economic Report of the President , Table B-73
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$23.8
$45.8
$69.6
$13.9
$55.7
$23.4
$50.6
$74.0
$13.4
$60.6
Nonfinancialassets
Financialassets
Total assets Totalliabilities
Net worth
2009 2011Q:4
CHAPTER 4: COMPARISON OF THE CENSUS WEALTHTABULATIONS TO THE FED’S FLOW OF FUNDS NET WORTH
DATA
The Federal Reserve Bank measures household wealth in a somewhat different way than does
the U.S. Census Bureau, but its reports provide corroboration of the picture emerging from
recently released Census wealth tabulations. As with the Census Bureau data, the Fed data
show that all of the growth in aggregate wealth from 2009 to 2011 can be accounted for by the
increase in the value of financial assets.
There are a number of
differences between the
Federal Reserve data and the
Census Bureau tabulations. Among these differences, the
Fed data refer to the assets
and liabilities owned by the
nation’s nonprofit
organizations as well as
households. In addition, they
are in nominal dollars and
not adjusted for inflation.
However, as with the Census
data, the Fed data show a
rise in wealth from 2009 to
the fourth quarter of 2011.
Likewise, the Fed data
indicate that most of the
growth in the nation’s wealth
during that period was due to
an increase in the value of
financial assets. From 2009 to the fourth quarter of 2011, financial assets increased in value by $4.8 trillion (from $45.8 trillion to $50.6 trillion), accounting for nearly all of the $4.9 trillion
increase in the nation’s net worth of households and nonprofit organizations.
Aggregate Assets, Liabilities and Net Worth of
Households and Nonprofit Organizations,
2009 to 2011:Q4
In trillions of dollars
Note: 2009 data are in 2009 dollars; 2011 data are in 2011 dollars.
Source: Federal Reserve Board Flow of Funds Accounts, March 7, 2013 release, tableB.100
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REFERENCES
DeNavas-Walt, Carmen, Bernadette D. Proctor, and Jessica C. Smith. 2012. “Income, Poverty,
and Health Insurance Coverage in the United States: 2011.” Current PopulationReports, Consumer Income, P60-243. Washington, DC: U.S. Census Bureau,
September. http://www.census.gov/prod/2012pubs/p60-243.pdf
Gottschalck, Alfred O. 2008. Net Worth and the Assets of Households: 2002. Current
Population Report P70-115. Washington, DC: U.S. Census Bureau, April.
http://www.census.gov/prod/2008pubs/p70-115.pdf
Gottschalck, Alfred, Marina Vornovytskyy, and Adam Smith. 2012. Household Wealth in the
U.S.: 2000 to 2011. Washington, DC: U.S. Census Bureau, March.
http://www.census.gov/people/wealth/files/Wealth%20Highlights%202011.pdf#zoom=100
Orzechowski, Shawna, and Peter Sepielli. 2003. Net Worth and Asset Ownership of
Households: 1998 and 2000. Current Population Report P70-88. Washington, DC:
U.S. Census Bureau, May. http://www.census.gov/prod/2003pubs/p70-88.pdf
7/27/2019 A Rise in Wealth for the Wealthy; Declines for the Lower 93% – An Uneven Recovery, 2009-2011, Pew Research …
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A Rise in Wealth for the Wealthy; Declines for the Lower 93%
APPENDIX 1: CENSUS WEALTH AND ASSET OWNERSHIP DATA
The Census Bureau collects ongoing data on the nation’s wealth and ownership of assets in the
Survey of Income and Program Participation (SIPP). Modules on wealth have existed since1984, and for many years the Census Bureau published wealth reports in its SIPP P-70 report
series. Gottschalk (2008) is a good introduction to the wealth data based on SIPP. The most
recent SIPP wealth collection occurred as part of wave 10 of the 2008 SIPP panel. Interviews
occurred over September to December 2011 and refer to assets and liabilities as of the last day
of the prior month. The 2009 data (wave 4 of the 2008 SIPP panel) were collected in similar
fashion and hence the two wealth snapshots presented in this report are representative of the
nation’s wealth in August to November of 2009 and 2011. The 2011 data were based on
interviews with about 31,000 households.
The wealth tabulations in this report are based on tabulations of the SIPP data published by the Census Bureau. The 2011 tabulations were published by the Census Bureau on March 21,
2013.
Most of the dollar figures are adjusted for inflation and expressed in 2011 dollars.
The nine household net worth categories available in the Census tabulations are, however, in
nominal dollars. In both 2009 and 2011, about 16.0 million households had a net worth of at
least $500,000. In 2009 the $500,000 refers to $500,000 in 2009 dollars, while the
$500,000 in 2011 refers to $500,000 in 2011 dollars. Since $500,000 was worth more in 2009
than it was in 2011, implicitly it became easier for a household to be included in the $500,000
or more net worth category in 2011 than in 2009. In each year about 13.5% of households had
$500,000 of net worth in nominal terms. But because of inflation, a smaller share of
households had $500,000 in real purchasing power in 2011 than in 2009.